Review recommends two-way tolling for Sydney Harbour Bridge and Tunnel and Eastern Distributor

Two-way tolling on the Sydney Harbour Bridge and tunnel as well as the Eastern Distributor has been recommended by a long-awaited toll review.

Two-way tolling on the Sydney Harbour Bridge and tunnel and the Eastern Distributor are among some of the recommendations made in the NSW government’s long-awaited toll review, in a move that could initially see some motorists pay more.

Other recommendations of the independent Tolls Review interim report released on Monday headed by competition chief Alan Fels recommended tolls be charged on a decreasing cost per kilometre as well as additional infrastructure charges on some roads.

Mr Fels said the city’s toll regime needed to be reset by first simplifying and streamlining tolls, yet he acknowledged this could lead to some motorists initially paying more in tolls.

The review also revealed Sydney motorists would fork out $195 billion in tolls by 2060 if the city’s toll regime was not changed.

WestConnex is set to make the most money from drivers, with the scheme accounting for 52 per cent of the total estimated toll figure according to the findings.

Motorist driving towards the Sydney Harbour Tunnel and Bridge toll at North Sydney. Picture: Jonathan Ng

Based on the report findings users will pay three times the cost of the WestConnex scheme just in tolls.

Drivers on the M4 will be hit hardest, paying WestConnex $24.60 billion in tolls over the next 37 years.

The M7, M8 and M5 east and southwest roads will be set to cost drivers a combined total of $57.22 billion.

As a first measure for overhauling the toll regime, the report recommends legislating an independent state TollCo to inject greater competition into the market with the view to eventually resetting toll levels. It would look at unifying toll prices across the system as well as putting in incentive measures for more freight vehicles to use toll roads.

The NorthConnex tunnel pictured before it opened. Picture: Transurban

Fel’s report highlights serious issues with the current toll regime of which a monopoly by Transurban has resulted in an unfair system.

“Unlike most businesses, once a toll price is established, toll operators have a monopoly and toll prices are free from any competition,” he said.

“There will be some rebalancing of tolls ... there’s underpricing if you like in some areas and in the short term they’ll no doubt experience some increase in tolls.”

While the Minns government has yet to commit to any of the recommendations, it is understood they are looking seriously at the implementation of declining distance tolling as well as legilating a state run TollCo.

The review recommended ending toll relief schemes with Mr Fels saying schemes such as the $60 toll cap and the M5 cashback scheme have low uptakes and are not well targeted for disadvantaged drivers.

Yet Premier Chris Minns on Monday ruled out axing Labor’s key election promise - a $60 weekly cap on tolls which the Fels report was critical of - while also backing away from endorsing the other recommendations in the report.

“That was an election commitment. It’s fully funded for the next two years. It’s an important part of an interim measure so that motorists in Western Sydney know that they’re not going to get a raw deal while we work through the mess that’s been left to us by the previous government,” Mr Minns said.

He added another suggestion - to add two-way rolling to the Sydney Harbour Bridge - was “purely hypothetical”.

He also ruled out axing the M5 cash back scheme, saying “there’s no question that toll road users in south western Sydney would be left behind” if that move was taken.

Roads Minister John Graham backed a move to introduce distance based tolling, saying “I think it’s a helpful option to be sitting in front of”.

Transurban chief executive Michelle Jablko said the toll company was open to reform and welcomed the report.

“We’re pleased to see that some of the ideas we’ve provided to the NSW government have been included in the report and that the review recommends that existing contracts are honoured,” she said.

“We will take some time to work through the details, and we think there is opportunity to continue to enhance value for customers.”

The new report found 87 per cent of motorists believed tolls around the city are too high with 70 per cent believing the tolls to be unfair from a sample survey of 1500 Sydney drivers.

Roads Minister John Graham NSW Treasurer Daniel Mookhey, and Professor Alan Fels at a press conference regarding Sydney Tolls. Picture: NSW GOV via NCA NewsWire

Despite the exorbitant cost to motorists, changing the tolling regime will not be easy with the report finding the issue “could not be readily corrected” due to watertight concession agreements with private toll companies.

Most agreements include ‘floor’ provisions meaning that if a toll is increased in line with the Consumer Price Index (CPI) and inflation, the price cannot be decreased, even if the CPI does.

Premier Chris Minns said the report laid bare the reality of privatising the city’s roads at the expense of drivers.

“The toll burden is hitting families who can least afford it most, particularly parts of western Sydney that have fewer public transport alternatives to getting in the car and paying tolls,” he said.

“This isn’t fair – It’s putting a huge burden on Sydneysiders trying to get to work, drop their kids at school and go about their lives.”

Roads Minister John Graham said the next step was getting a better deal for drivers.

“The toll contracts were designed with guaranteed financial returns to their owners and operators … before the need for an efficient and affordable network.”

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Originally published as Review recommends two-way tolling for Sydney Harbour Bridge and Tunnel and Eastern Distributor